In any divorce, the best way to protect your pension is to get a clean break, which means that your partner can’t claim against your pension further down the line.
Alternatively, you might want to enter in to a Pension Sharing Order. This will make anything you and your former partner agree about your pensions legally binding, and mean your partner can’t claim for any more of your pension further down the line.
Your pension is probably one of your largest assets, so we understand if you want to protect it when getting a divorce.
But when you get married your pension becomes a marital asset, and divorce alone does not cut the financial ties of marriage. This is why it’s so important to consider your pension in any financial agreements you and your former partner make when separating, in particular in longer marriages.
The law around how your pensions should be divided is not straightforward and really depends on your situation. It might be that your pensions are of similar value, in which case you might be happy to just keep your own pensions and move on.
Sadly, this isn’t always the case and we see far too many couples divorcing without even discussing their pensions, even where one may have a much larger pension than the other.
If you’re worried about what might happen to your pension in divorce, speak to one of our Divorce Solicitors. We will look at your unique situation and tailor our expert legal advice to your needs.
We're rated‘Excellent’There are 3 ways that your pensions can be dealt with in divorce:
There’s no best option and what you and your former partner decide should be based on your circumstances.
Because there’s no hard and fast rules when it comes to pensions in divorce, it’s always a good idea to get expert legal advice if this is something you’re concerned about.
Our Divorce Solicitors can advise you on what might work for your divorce. Your pension will be part of the total value or matrimonial assets that you share with your former partner, so it’s a good idea to look at all of your shared assets overall when deciding what to do with your pensions.
You don’t have to share your pension in divorce, but it is important to remember that it is likely to be classed as a marital asset. This means your partner may be entitled to a portion of your pension and you theirs.
It’s also important to remember that there are two people involved in every divorce and while it is hard to be fair during what can be an emotional time, it’s important to consider the separation from both sides.
For example, if you worked while your partner stayed at home and raised your children, sharing your pension may be the fairest way of handling things.
In other circumstances, it might make sense for you to keep your own pensions separately.
Whatever you decide, it is always best to make sure your agreements are legally documented so your former partner can’t change their mind years down the line.
If you decide not to share your pensions, you should still make your agreements legally binding by dismissing any pension claims in a Consent Order when considering your other marital assets.
When dividing assets in a divorce, pensions can often be one of the largest matrimonial assets. Because it’s such a valuable asset it can problematic deciding who is entitled to what.
Silver Splitters is a term used heavily in the press to refer to people who are getting divorced later in life. The divorce process means the ending of a marriage but if you are going through this, you also need to arrange a financial separation too. This process becomes a little more complicated if one of you is already drawing from a pension scheme.
According to the New Marriage Foundation research one in five weddings in the UK now start with a prenup; but the divorce rate is far higher than this. It is estimated that the divorce rate in the United Kingdom currently sits at 42%; and whilst nobody likes to get divorced, it’s something that does happen more and more frequently–and you should always be prepared financially.
When it comes to something as valuable as your pension, it’s really important that you make the right decision and make sure you both stick to your agreements.
This can be done not only with a Financial Order, but also with expert legal advice from a Divorce Solicitor and a pension expert.
Because pensions can be complicated, it’s hard to know exactly what each of you are entitled to and this could change throughout your lifetime.
Our Divorce Lawyers have years of experience in helping separating couples with their finances, and we can help to work out a fair divorce settlement so you can get the financial security and clean break you deserve.
Fill in the form below to get in touch with one of our dedicated team members, or call our team today on: 0808 239 3465
